Boral on board at Charter Hall's transformation at Chullora
Fund manager Charter Hall is transforming the former printing site at Chullora bought from Fairfax Media into a $150 million logistics facility, with building products giant Boral the latest tenant to sign up.
The deal with Boral – which includes two of the firm’s business units – will result in a purpose-built 10,749 square metre facility with leases that expire in more than eight years.
Boral joins Australia Post, Lion Dairy and Rittal who have all committed to new purpose built facilities at the last mile logistics hub.
Charter Hall took control of the 10.3-hectare site near Bankstown in early 2015, acquiring it for $45 million.
The logistics park is owned by the $3 billion Charter Hall Prime Industrial Fund. When completed it will be home to around $150 million in industrial real estate with an average lease expiry of 12.7 years.
“In developing this new facility we’ve worked very closely with Boral to deliver a smart, long-term solution allowing their business to grow while ensuring a positive result for our capital partners,” said fund manager Richard Mason.
Already in place are major leases struck with Australia Post, which is occupying a 21,930 sq m facility on a 15-year term, Lion Dairy and Drinks, which is taking up a 9,985 sq m building on a 15-year term, and Rittal which has taken a 4,480 sq m facility for 10 years.
Increased capacity
This month Australia Post has opened its new automated parcel sorting facility, constructed next to its existing warehouse.
With the new facility, it is the first time Australia Post can trial two shifts in a day, enabling the national carrier to increase its processing capability to 100,000 parcels a day.
Head of industrial development, Andrew Simons, said Charter Hall’s original plan had been retain and extend the existing buildings on the Chullora site.
However, the demand from blue-chip occupiers for new, purpose-built facilities allowed the fund manager to demolish existing facilities and create a new logistics estate.
Mr Simons said Australia Post was one of Charter Hall’s cross-sector tenants, occupying space across sectors within the Charter Hall portfolio, including five industrial facilities, 17 retail shops and office space around Australia.
